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The Investing Blog - Financial Research & Analysis
STOCK MARKET
    Trading
Cryptocurrency
INVESTMENTS
    ETFS
    BONDS
    COMMODITIES
FINANCES
    LOANS
    INSURANCE
    WEALTH MANAGEMENT
STRATEGIES
SAVING MONEY
About
Contact Us
  • STOCK MARKET
    • Trading
  • Cryptocurrency
  • INVESTMENTS
    • ETFS
    • BONDS
    • COMMODITIES
  • FINANCES
    • LOANS
    • INSURANCE
    • WEALTH MANAGEMENT
  • STRATEGIES
  • SAVING MONEY
  • About
  • Contact Us
Trading

Trading Strategy: Think in Terms of Probabilities and Predefined Exits

A strategy with predefined exits levels helps you completely eliminate psycho-traps, as long as you stick to them.

Either one share reaches your +20% target or it is stopped at -10%. There are only (!) These two alternatives for you and you stick to it until one of the two events occurs.

Other investors, however, are always at a loss and ask themselves at news or price movements regularly what to do now.

With a fixed system with fixed exit prices, this is a thing of the past for you.

Because your exit courses are fixed from scratch, you do not need to track news or business reports. Afterwards, you can sit back and watch as your portfolio continues to appreciate.

How to jump from one profit wave to the next

But: Keeping strictly to the guidelines is often easier said than done, especially for beginners.

Why sell a stock at -10% if it could recover? And why should you get off at + 20% profit, if maybe there was more in it?

Quite simply: Because you and I do not rely on “hopes”, but on a proven, highly profitable trading system. And believe me: there will never be a shortage of +20% opportunities in good stock market phases! ... 

CONTINUE READING
Trading

Price Movements and How You Can Use Them

Why price gains “already” should be taken at +20%, some readers want to know again and again. Many strong stocks would still rise (of course in hindsight).

I agree with you, in the current environment many values, even in a single wave, often increase significantly more than + 20%.

However, these five main reasons speak for my proven +20% strategy:

1. You cut the safest + 20% profit out of a rise in price

Many growth stocks jump upwards by + 20% in a swing wave, ie within a few weeks.

On top of that, with every percentage point, more stocks run out of steam, followed by an interim correction that often yields half of the gains or even more.

Therefore, it makes sense to cut out only the safest part of the rise after a chart break and then take another chance with start advantage through a new “outbreak turbo”.

2. Rising profit targets also increase the risks

With higher profit targets, you would also have to allow for greater variability from the point of view of risk and opportunity, otherwise otherwise too many stocks would be stopped out in sideways markets.

Of course this means more overall risk through more stops and longer holding times. ... 

CONTINUE READING
Trading

Timing The Capital Market: A Trading Strategy with Pitfalls

Many traders are eager to reach exactly the perfect entry and exit times, ie to “time out” the market.

Surely you have heard the story before:

A friendly investor has managed to buy a stock at (local) lows, hold it for a while and then sell it at highs. He proudly tells you about his coup.

With awe, if not envy, listen to his story. This strategy is called “timing” the capital market.

In order to “time” the market, investors often use technical analysis indicators such as up or down trends, evaluate economic fundamentals or rely on luck.

Many investors are eager to reach exactly the perfect entry and exit times.

Accordingly, the frustration is great if you do not succeed.

And since it rarely succeeds, many market timers are frustrated and withdraw from the stock market.

Not even Warren Buffett succeeds in timing the market

In the history of the stock exchange, no investor has ever managed to buy successfully at low prices and sell at high prices with various stocks over a stock exchange cycle, ie over a stock exchange cycle. ... 

CONTINUE READING

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